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MR Allston And 9-123-456 APRIL 8, 2019 BACKGROUND NOTE Allston and the Enterprise Research Campus In March 2018, the Boston Planning and Development Agency board announced its approval for new development of 14 acres of Harvard's Enterprise Research Campus (ERC). Comprising 36 acres of property that for many years had been home to CSX-T property and a trucking facility, the site had since been remediated and was ready for new construction. The University's 2011 Allston Work Team had envisioned it to be a "gateway to a collaborative community" that would include research-focused companies of all sizes, along with green space, residences, and a hotel and conference center—in short, a vibrant addition to Harvard and to the Allston community. Then, in November 2018, Harvard announced the formation of a wholly-owned subsidiary—Harvard Allston Land Company, or HALC—to oversee development of the ERC, with HBS Dean Nitin Nohria serving as chair of the governing board and Thomas (Tom) Glynn as CEO (see Exhibit 1 for the Gazette story). Glynn, who had spent six years as head of Massport, had overseen a number of development projects in Boston's burgeoning Seaport District; his prior experience also included leadership roles at the Massachusetts Bay Transportation Authority, as US Deputy Secretary of Labor, as COO of Partners HealthCare, as well as time on the Harvard Corporation's Committee on Facilities and Capital Planning. HALC would be governed by a board of directors, would be staffed with a lean team of experienced professionals, and would coordinate its development activities with the University’s planning, legal, and public affairs departments. Harvard’s Corporation laid out a series of guiding principles for the ERC that included attracting “idea intensive” activities and partnering with area Universities (see Exhibit 2). Harvard’s History in Allston In the 1990s and early 2000s, the University began purchasing land in Allston, expanding its holdings beyond the athletic facilities and Business School. Today, at 360 acres, the Allston campus is one-and-a-half times the size of the Cambridge campus (see Exhibit 2). The University commissioned numerous master planning efforts for Allston and projected significant expansion of its academic footprint. The Allston Science Center (ASC), envisioned as a nearly one-million- square-foot, four-building complex, received City regulatory approval in 2007 and was expected to open in the summer 2011. However, the University paused the project as the global financial crisis unfolded in late 2008 and created the Allston Work Team to evaluate options and recommendations for development. The Work Team’s report had five recommendations, which the Corporation endorsed in 2011: • Resume planning and development on the ASC foundation as an innovative interdisciplinary science center. This note was prepared for the Board of Dean's Advisors meeting. Copyright © 2019 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685, write Harvard Business School Publishing, Boston, MA 02163, or go to www.hbsp.harvard.edu. This publication may not be digitized, photocopied, or otherwise reproduced, posted, or transmitted, without the permission of Harvard Business School. 123-456 Allston and the Enterprise Research Campus • Create an enterprise research campus in Allston Landing North, opening a gateway to a collaborative community for business, investment capital, research, and science development. • Enhance the vibrancy in Barry’s Corner (where North Harvard Street intersects Western Avenue) through new rental housing, retail, and other amenities. • Enable future institutional growth by preserving land adjacent to the existing campus, and advance academic planning to determine next steps. • Explore the feasibility of a state-of-the art conference center and hotel to accommodate the academic and research sectors. In subsequent years, under the leadership of Katie Lapp, EVP and Chief Administrative Officer of Harvard University, several projects were advanced, including the Harvard Innovation Lab (2011), Launch Lab (2014), and Pagliuca Life Lab (2016) as well as community programming including the Harvard Allston Education Portal and the Harvard Ceramics Program. These activities brought new retail tenants into University-owned properties including three new restaurants, a film studio, gyms, and not-for-profit organizations; by 2012, 97% of the University’s leasable portfolio in Allston was occupied, up from 64% in 2009. Harvard Development Projects in Allston By 2019, Harvard had several other institutional projects well underway in Allston. These included: Science and Engineering Complex (Fall 2020) – The Science and Engineering Complex (SEC), designed by Behnisch Architekten, will house roughly two-thirds of the SEAS faculty and virtually all its administrative personnel. It will be the primary site for SEAS research, classroom activities, and student space. The eight-story, nearly 500,000-square-foot building will span more than 500 feet of Western Avenue and supply an estimated 32 research labs and 33 varied teaching and learning spaces. District Energy Facility (Fall 2019) – The District Energy Facility (DEF) is a 65,000-square-foot facility that will house energy production and distribution equipment and systems supporting the heating, cooling, and electric distribution needs of the SEC and future institutional buildings. ArtLab (Spring 2019) – The ArtLab is a 9,000-square-foot modular, light-weight structure along North Harvard Street that will support cross-disciplinary experimentation by students and faculty. It will be a flexible facility for dance, theater, sound recording, and film and video editing. Child Care (2020) – An additional child care center will open in Allston at 114 Western Avenue to support SEAS faculty, students, and staff, as well as other University users and community members. American Repertory Theater – In February 2019, the University announced plans to move the ART to Allston. The ART draws artists from around the world to develop musicals, plays, and operas inspired and enriched by its partnerships with faculty members and Schools across the University; ART director Diane Paulus noted that the new facility will “allow us to envision a sustainably designed center that encourages creative risk-taking in open, democratic spaces that will feel welcoming and porous to the city.” A range of other projects had been completed or were underway in Allston as well, ranging from a multiyear renovation of the University’s Soldiers Field Park apartments, to an updating of the Lavietes Pavilion and Bright Hockey Arena for Athletics, to the construction of Tata Hall, the Chao Center, Klarman Hall, and Batten Hall on the HBS campus. 2 Allston and the Enterprise Research Campus 123-456 Other Allston Development In addition to projects on which Harvard was taking the lead, several others projects had been completed and were under development. Some were based on long-term ground leases on land owned by Harvard. Others were on land developers had independently acquired in the neighborhood. Continuum – In 2015, Harvard executed a long-term ground lease to support the construction of a nine- story residential building in Barry’s Corner comprising 325 market-rate rental units and approximately 40,000 square feet of ground floor retail, including a Trader Joe’s, Starbucks, gym, and restaurant. NEXUS at the Allston Innovation Corridor – The proposed project is a three-building, 607,900-square- foot biotechnology and life sciences hub along Western Avenue in Allston. Covering 4.3 acres, it is anticipated to include approximately 21,100 square feet of ground floor retail uses, 40 housing units, and approximately 1,900 square feet of civic space. 1170 Soldiers Field – Though still in the early planning stages, in Summer 2018 two Boston-area developers signed an agreement to build a new facility for WBZ-TV on a portion of its 8-acre site in Allston; once the new studio is done, the old studio will be torn down and the property redeveloped as a “mixed- use” campus of roughly 1 million square feet. The Enterprise Research Campus In March 2018, the University received City of Boston approval of its Planned Development Area (PDA) Master Plan for the first 14-acre phase of the ERC. In addition to a series of guiding principles that would guide development (see Exhibit 3), the plan outlines a number of potential uses: • 400,000 square feet of office/lab space; • 250,000 square feet of residential space; • 250,000 square feet for a hotel and conference center; • between 800 and 900 below-grade and surface parking spaces; and • new public open spaces and new roadways. 3 123-456 Allston and the Enterprise Research Campus A large factor in the timing and build out of the ERC would be the project to realign the Massachusetts Turnpike, an undertaking of the Commonwealth of Massachusetts to replace the functionally obsolete Allston viaduct. As owner of the land, Harvard entered into a Letter of Intent (LOI) with the Massachusetts Department of Transportation in Fall 2014, which notes that in exchange for the University’s transfer of land to support the State’s rebuilding of the turnpike project and realignment of commuter rail tracks, the Commonwealth will: • build a commuter rail station in the area currently called “West Station”; • demolish the old turnpike ramps and extinguish its easements encumbering that land (~50 acres); and • provide air rights to the University over the rail tracks. In Winter 2019 the Commonwealth announced its final plan to put the Massachusetts Turnpike at ground level in Allston and elevate a section of Soldiers Field Road along the Charles River onto a new viaduct above the highway. At present, the Commonwealth expects the project to get underway in 2021; it could take up to eight years to complete. The completion of this project was seen to be crucial to unlocking further development in Allston, as it would provide the public transportation access that would otherwise constrain the amount of development that could be permitted in the area.
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